Dan Girardi buyout calculator, cap hit impact

Dan Girardi Buyout Cap Implications

Birthdate April 29, 1984

Dan Girardi was bought by New York Rangers logo out prior to the 2017-2018 season.

The annual cap hit of a buyout is calculated year by year as follows:

  • Add together the Original Cap Hit and the Contract Signing Bonus for that year
  • Subtract the Contract Total Salary for that year (base salary + signing bonus).
  • Finally, add the Annual Buyout Cost as calculated below.

He was 33 years old at the buyout giving him a 67% buyout multiplier.
Under 26 = 1/3 multiplier
26+ = 2/3 multiplier

The total buyout cost was $6,666,667
Remaining base salary
($10,000,000 * 67% buyout multiplier)
.

3 years left in contract.
Buyout applied over 6 years
(2x years remaining on contract)

Annual buyout cost of $1,111,111
(Total buyout cost/6 years)

Dan Girardi buyout details 2017-2018 season
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Remaining Base Salary
$10,000,000
$4,000,000 $3,000,000 $3,000,000 $0 $0 $0
Original Cap Hit $5,500,000 $5,500,000 $5,500,000 $0 $0 $0
Contract Signing Bonus $1,000,000 $1,000,000 $1,000,000 $0 $0 $0
Contract Total Salary ($5,000,000) ($4,000,000) ($4,000,000) ($0) ($0) ($0)
Annual Buyout Cost $1,111,111 $1,111,111 $1,111,111 $1,111,111 $1,111,111 $1,111,111
ACTUAL CAP HIT New York Rangers logo $2,611,111 $3,611,111 $3,611,111 $1,111,111 $1,111,111 $1,111,111
Savings $2,888,889 $1,888,889 $1,888,889 $-1,111,111 $-1,111,111 $-1,111,111